§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether the assumption in section 17, page 6 of Economic Prospects that the exchange rate in 1981 will be at a level similar to that of mid-November 1980 implies the further assumption that interest rates will also be similar to those prevailing then.
§ Mr. LawsonNo. Interest rates in the forecast were designed to be consistent with the achievement of a rate of monetary growth at the centre of the MTFS range of 6 per cent. to 10 per cent. in 1981–82 under the stated assumptions about fiscal policy and the exchange rate and prospects for the rest of the economy.